CCRC Contract Types Explained: Reimagine Your Future Options
When planning for the next chapter of your life, finding a community that offers both security and the lifestyle you envision is what everyone strives for. That’s where Continuing Care Retirement Communities (CCRCs), also known as Life Plan Communities, come in. These communities provide a full continuum of care—independent living, assisted living, skilled nursing, and memory care—all in one location. This means that as your needs change over time, you don’t have to uproot your life or leave a community you love.
But choosing a CCRC isn’t just about the beautiful amenities or friendly neighbors—it’s also about finding the right financial and care arrangement for your future. CCRC contract types determine how you’ll pay for care if and when you need it, which impacts everything from your monthly budget to your long-term financial security. Understanding these contracts can feel overwhelming, but don’t worry—we’re here to break it down in a way that makes sense, so you can make the best choice for you.
What is a CCRC?
At its core, a CCRC is designed to give you peace of mind. It’s a senior living community that provides different levels of care on one campus, so you can transition smoothly as your health needs evolve. Whether you’re active and independent now or anticipate needing more support down the road, CCRCs offer a plan that ensures you have access to high-quality care without having to move somewhere unfamiliar.
But not all CCRCs are the same, and the type of contract you choose can make a big difference in how you pay for care. Let’s dive into the different types of contracts available and what they mean for your future.
LifeCare® (Type A) Contract
If you’re looking for the most comprehensive and predictable option, a LifeCare® contract is your best bet. It requires a higher upfront entry fee, but in return, your monthly service fees remain stable—even if you require assisted living, skilled nursing or memory care later on. This means you won’t be hit with significant cost increases should your care needs change.
Think of a LifeCare® contract as a “pay now, save later” approach. You’re securing access to future care at little to no additional cost beyond your standard fees. For those who want the security of knowing their expenses won’t fluctuate dramatically due to health care needs, LifeCare® is an attractive choice. At The Heritage at Brentwood®, our LifeCare® program ensures that residents have access to our top-rated Somerfield Health Center, offering high-quality care whenever it’s needed.
Modified (Type B) Contract
A Modified contract is a middle-ground option. It requires a lower entry fee than a LifeCare® contract, but it only includes a set amount of health care services. If you exceed that included care, you’ll pay additional fees at a discounted rate.
This contract type is ideal for those who are relatively healthy but want some built-in financial protection should their health care needs increase. It offers more flexibility than a Type A contract while still providing some cost savings compared to paying entirely out of pocket.
Fee-for-Service (Type C) Contract
A Fee-for-Service contract, sometimes called a Type C contract, has the lowest upfront entry fee, making it appealing for those who prefer lower initial costs. However, health care services are not included—you’ll pay for assisted living, skilled nursing or memory care services at full market rates when you need them.
This contract is best suited for seniors who are in excellent health and don’t anticipate needing much care in the future. While the initial costs are lower, it’s important to understand that paying the full market rate for care can add up quickly if your health situation changes.
Rental Contract
A rental contract offers a month-to-month arrangement with no large upfront entry fee. Instead, residents pay a monthly service fee for their accommodations, and any health care services needed are paid for separately at market rates. This option is attractive for those who want flexibility and aren’t ready to make a long-term financial commitment. However, because care costs are not locked in, expenses can become unpredictable if health needs change.
Equity or Co-Op Contract
In an Equity or Co-Op contract, residents purchase their home within the community rather than paying an entry fee. This offers a sense of homeownership and the potential for investment appreciation, but health care costs are typically paid separately. While some may find this option appealing, it’s important to consider the resale process and ongoing maintenance responsibilities that may come with ownership.
Reimagine Your Future at The Heritage at Brentwood®
Finding the right CCRC contract is a big decision—one that impacts your financial future, health care access, and overall lifestyle. At The Heritage at Brentwood®, we offer a LifeCare® (Type A) contract, providing residents with the peace of mind that their future care is secured with predictable costs. Our residents appreciate the security, quality health care, and vibrant lifestyle that come with this model.
We understand that transparency and trust are essential when making this decision. Our team is here to answer your questions, provide a clear understanding of contract terms, and help you determine what works best for your personal situation. You can also find information on CCRCs from senior living financial experts like Brad Breeding.
We encourage potential residents to experience our community firsthand—whether through a visit, a staycation, or just a coffee and conversation with current residents.
senior living financial experts like Brad Breeding
We’re here to help you explore your options and make confident choices for your future. Come visit us and see how our community can support your lifestyle and care needs—while helping you live your best life. Contact us to schedule an appointment today.
